boiler room

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Boiler room

Used to describe place or operation in which unscrupulous salespeople call and try to sell people speculative, even fraudulent securities.

Boiler Room

Informal; a place where workers make unsolicited telephone calls to completely unknown persons in an attempt to convince them to invest in a particular venture. Boiler rooms are controversial and some jurisdictions have put in place laws limiting their legitimate use. In any event, the term has a negative connotation; one often hears of boiler rooms in the context of shady and perhaps illegal investments.

boiler room

An area in a sales operation in which are located personnel who are engaged in contacting prospective buyers, usually by telephone, and in using high-pressure tactics to sell securities. These operations are associated with high commissions and unethical practices.

Boiler room.

A boiler room is a location used by con artists to contact potential victims out-of-the-blue -- an approach known as cold calling -- in an attempt to sell high-risk investments that may or may not be legitimate.

Boiler room scammers typically use high-pressure tactics to close an immediate sale and are unwilling to provide written information about either the investment they are pushing or themselves.

boiler room

A lead-generating system usually characterized by large groups of people working in cubicles making cold calls to consumers in order to gauge interest in real estate investments,insurance products, refinance offers, or any number of other products.The leads are then sold to professionals for follow-up. Sometimes,the boiler room operation also engages in high-pressure sales techniques, which has lead many states to pass legislation allowing a cooling off period within which to reject and void any contracts entered into as a result of such tactics.

References in periodicals archive ?
Margaret Cole, the FSA's managing director of enforcement, said: "So far this year we have contacted 95,000 people across the UK to warn them about the risks of investing via boiler room fraudsters.
One such name change was needed after an article ran in the British media about Blossom Hill Investments, a fake firm the boiler room sold shares in.
The leaflet, which was first published in 2006, provides information on how to identify a boiler room and what to do when they contact you.
"Investors are reminded to just hang up the phone when contacted by boiler rooms as in most cases these investments do not have a happy ending."
Boiler rooms often prey on investors looking for high yield, low risk returns within a short time frame."
The Boiler Room is now open daily between 10.30am and 9pm.
Many federal and local law enforcement agencies, along with 18 FBI field offices, participated in the March 1993 takedown, resulting in raids of 79 boiler rooms and the arrest of 300 subjects nationwide.(3) Although Disconnect was a one-time operation, the methodology used in this investigation established a solid foundation for law enforcement to combat illegal boiler rooms in an effective, proactive manner.
One operator indicted in Los Angeles last year ran six boiler rooms employing 250 people and grossing $18 million a year.
Detectives from City of London Police acted after uncovering a "sucker list" of potential targets for boiler room conmen.
BOILER rooms pose the biggest threat to your hard-earned savings - that's official.
Chesteroak and Bingen Investments, were placed into compulsory liquidation by the High Court for assisting boiler rooms.
As the Financial Services Authority warns about the latest tactics being used by so-called "boiler rooms" to con both UK investors and small businesses, Jane Hall looks at how to avoid being reeled in.